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August 8, 2006
Medallion Announces Second Quarter Results
- Net Increase in Net Assets Increases to $0.23 per share, highest in nearly 2 years
- Delinquencies Continue to decrease to an all time low
- Dividend Raised to $0.17, highest in over 5 years
Charts
- Consolidated Income Statements
- Consolidated Balance Sheets
NEW YORK, NY - August 8, 2006 -- Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position servicing the taxi industry and targeted niche markets, announced net increase in net assets resulting from operations of $4,076,000, or $0.23 per diluted share in the 2006 second quarter, up from $447,343 or $0.03 per diluted share in the 2005 second quarter, an increase of $3,628,657. Net increase in net assets resulting from operations increased to $5,862,238, or $0.33 per diluted share for the 2006 six months, up from $2,683,320, or $0.15 per diluted share for the 2005 six months, an increase of $3,179,000.
Medallion loans grew to $468,026,518, from $423,798,555 a year ago, an increase of $44,794,012 or 11%. Commercial loans were at $146,642,378, down from $155,765,264, a decrease of $9,122,886 or 6%. Excluding the sale of a divested business, Business Lenders, commercial loans increased $10,226,000 or 7%. Consumer loans grew to $103,938,426, from $76,628,773, an increase of $27,309,653 or 36%. The total yield in the quarter across the entire portfolio increased to 8.99% from 8.25% a year ago.
Net investment income after taxes was $2,431,000 in the 2006 second quarter, a decrease from the prior period primarily due to higher loan payoffs, as well as lower amounts of interest recoveries. However, results of the June New York city taxi medallion auction, for which we expect to generate additional fundings from new and existing customers, will be reflected in upcoming quarterly results, as those transactions begin to close. New York City medallion prices increased at the recent auction going for as much as $540,000 per taxi medallion. Net investment income was also impacted by stronger earnings at Medallion Bank, which resulted in a higher tax provision. Medallion Bank continues to be the Company's fastest growing and lowest cost funding source. As the Company's only significant taxpaying entity, Medallion Bank's retained earnings resulted in increased shareholders' equity by over $1,700,000 in the quarter.
Andrew Murstein, President of Medallion, stated, "We are pleased with our second quarter results, as the bottom line number is the highest it has been in several years. Medallion Bank is performing better than anticipated. It has contributed significantly to our earnings since opening for business less than 3 years ago. The consumer portfolio is yielding over 18%, and their 90-days past due delinquencies continued to decrease and remain below 1%."
Larry Hall, Medallion's Chief Financial Officer, stated, "Credit quality remains outstanding. Over 90 day delinquencies have dropped to just 1.9%. This is the lowest level they have been since our IPO over 10 years ago."
Medallion also announced that its Board of Directors has declared and will pay a cash dividend of $0.17 per share for the quarter. The dividend will be payable on August 30, 2006 to shareholders of record on August 18, 2006. The dividend is the highest amount the company has paid in over 5 years. The Company has now declared $0.33 per share of dividends over the first six months of 2006, up from $0.25 for the first six months of 2005, an increase of 32%.
About Medallion Financial
Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services loans financing small businesses and other targeted industries and niches. The Company and its subsidiaries have lent over $2.5 billion to the taxicab industry and small business.
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, and growth. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors discussed under the heading "Risk Factors," in Medallion's 2005 Annual Report on Form 10-K.
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